Spanish central bank: strong growth, but risks increase

Staff Writer
Columbus CEO

MADRID (AP) — Spain's central bank is warning of growing risks to the country's growth, even though the economy is forecast to remain one of Europe's best performers.

The Bank of Spain predicts in a quarterly report that gross domestic product will expand by 2.7 percent this year and 2.3 percent in 2017.

Those forecasts are slightly lower than previous predictions because it says risks to the economy have "worsened considerably in recent months."

The report published Friday said weaknesses in global growth, especially in fragile emerging markets, and geopolitical tensions are hazards for Spain.

At home, there is uncertainty over future economic policy as Spain's political parties are still trying to form a government following an inconclusive Dec. 20 election. The conservative Popular Party is currently in charge of a caretaker administration.